P3. Hawk, Inc. sold 10 heavy production machines with 2-year warranties for $400,000 each in 2019. At the end of 2019, it was estimated that the total warranty costs be $50,000 for the machines sold in 2019. Actual warranty costs incurred in 2019 were $27,000 and will be $15,000, and $12,000 in 2020 and 2021, respectively.

Instructions: Prepare any necessary journal entries for

1) The estimated total warranty costs on 12/31/2019,

2) The actual warranty costs incurred in 2019, 2020, and 2021.